Hello,
I have the latest version of Kali inside VMware Workstation 16 Player. Up until two days ago, I was able to Connect and Disconnect USB devices. Currently, I can see all of my Windows USB devices in VMware menu, but they are grayed out.

My Ubuntu vm works fine and I can connect and disconnect USB devices with no issue.

I tried deleting the Kali vm and reinstalling it, but no luck. I also tried different settings in VMware but no luck.

Thank you for your help.